Consumer Portfolio Services, Inc. (CPSS) is a specialized finance company that offers indirect automobile financing to consumers with past credit issues, low incomes, or limited credit histories. The company, based in Irvine, California, procures its contracts from both new and used automobile dealers, which originate the contracts at the point of sale. CPSS has been in the automobile financing business since 1991.
CPSS provides vehicle finance receivables portfolios to obtain capital through securitization and whole loan sales facilities. The company's operations mainly deal with the servicing of contracts, sale of contracts to investors, and establishment of portfolio benchmarks.
The business model of CPSS is unique as it caters to a critical segment of the automobile financing market. This clientele, often ignored by conventional lending institutions due to perceived risks, forms a sizable portion of the auto finance sector. CPSS's strategy relies on its ability to accurately risk-rate its clients through advanced analytics, thus effectively pricing its products to match the risk profile.
In terms of services, CPSS offers a plethora of options tailored to meet a wide array of financial needs and budgetary limitations. These include flexible payment terms, online payment options, a range of financial tools like loan calculators, and a dedicated customer service team ready to tackle any customer queries or complaints.
Despite being a financing company, CPSS places a strong emphasis on customer service, striving to ensure that their clients are not just borrowers, but fully informed and satisfied customers. This is achieved through their experienced and professional customer service, which is tasked with assisting clients comprehensively throughout their auto finance journey.
As a publicly-traded company listed on the NASDAQ exchange, CPSS demonstrates a commitment to transparency, compliance, and corporate governance. Financial reports are regularly published, ensuring that shareholders, investors, and potential partners have a clear view of the company's performance and financial health.
In conclusion, Consumer Portfolio Services, Inc. plays a significant role in the sub-prime auto finance sector, providing financing options for individuals who might otherwise struggle to secure an auto loan. Through its responsible lending practices, unique business model, and dedication to customer service, CPSS showcases an innovative approach to automobile financing.